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7 Simple Steps and Benefits of a cloud appraisal system for SMEs


cloud appraisal system

Many Small and Medium enterprises (SME)in Singapore have been facing labor shortage lately. Furthermore, with the increasing trend of picking the jobs that provide the most benefits, training and flexibility in pursuing their ideal roles, most SMEs are challenged in attracting, developing and retaining good talent within the company in the long run.

While SME owners and managers understand that the company should provide good training, a conducive working environment and an equitable reward system, there may not be any formal process of a performance management, and if there is, it may be paper based and cumbersome to carry out.

staff cloud appraisal system

Case Study (IT Company)

To show a clear example of the steps needed to implement a cloud performance review system, below is a case study of a client we have worked with previously.

A company providing IT consulting Services with approximately 60 headcount, decided to implement the performance management process using a cloud based hr system that consist of employee performance evalution system with the objective of improving both the retention and development of the employees.

These were the simple 7 steps taken to implement their performance management:

  1. Management implement process to determine and communicate company and departmental annual objectives and targets at the beginning of the year.
  2. Define the cycle of evaluation in a year. In this case there were 3 cycles.
  3. Ensure all job definition and roles are defined and appraisal templates with the areas to be appraised.
  4. Train the managers/supervisor and communicate with the employees.
  5. Roll out paper based system for year one. (optional if company is more ready)
  6. Evaluate and implement a cloud based performance review system.
  7. Implement the performance appraisal software incorporating
  8. Employee self appraisal with peer review incorporated manually when required.

As this is a cloud employee review system, the upfront hardware and software investment is negligible and the company is only paying for the usage of the system. A cloud appraisal system offers more flexibility in terms financial outlay.

employee cloud appraisal system


The benefits of implementing and having used a cloud based HR systems are:

  1. Annual employee turnover rate is reduced from 40% to below 20%.
  2. The employee development and training plan is more pro-active and employees are more motivated.
  3. More accurate and equitable bonus distribution resulting in better employee satisfaction.
  4. Managers and supervisors communicate and discuss career progression, performance improvement more frequently resulting in more accurate and better use of company resources in training and development. The supervisor relationship with the employees is strengthened, which is key to retention of good employee.
  5. Employee evaluation system also mean more efficiency in carry out the appraisal process.
  6. The use of moderation of appraisal across the company improve the equitability of bonus and compensation management, and helps in salary management.
  7. Assist top management greatly in implementing succession planning.

One of the biggest benefits of the cloud employee review system is that it can be implemented across the region should there be any employees working in other countries. The management can still get the consolidated view of the company and perform moderation of the results of the appraisal score at the end of the year.

cloud appraisal software

All in all, most SMEs should implement a cloud appraisal management system as the effort and financial outlay is manageable and there are many benefits. It will greatly enhance the business performance and competitiveness. With an integrated HRIS and performance management system, the HR and management can efficiently manage and develop talent easily.


The IQ Dynamics group consist of companies that specializes in providing integrated human capital management software, cloud hosting and IT services and HR services such as payroll and HR processing and advisory services.

Click here to find out more on iqDynamic’s HRMS and Talent Management System and click here to inquire on our system and services!

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